THURSDAY, APRIL 21, 1988
28
CHANGES IN TAXATION MUST MEET STATED OBJECTIVES
BY
THE MOST STRIKING POINT ABOUT THE SECOND BUDGET PRESENTED THE FINANCIAL SECRETARY LAY IN THE MENTION OF STRUCTURAL CHANGES TO THE TAXATION SYSTEM, THE HON ROSANNA TAM SAID IN THE LEGISLATIVE COUNCIL TODAY (THURSDAY).
BILL 1988, MRS TAM
SPEAKING IN SUPPORT OF THE APPROPRIATION SAID THE FINANCIAL SECRETARY HAD ON THE ONE HAND INTRODUCED REFORMS TO ARRANGEMENTS CONCERNING DIRECT TAXATION.
ON THE OTHER HAND, HE HAD SHOWN AN INTENTION TO ADJUST THE RATIO BETWEEN DIRECT TAXATION AND INDIRECT TAXATION, BY WAY OF BROADENING THE INDIRECT TAX BASE AND INTRODUCING NEW FORMS OF INDIRECT TAXES.
"I DO NOT OPPOSE STRUCTURAL CHANGES IN OUR TAX SYSTEM BUT I AM VERY CONCERNED THAT THESE CHANGES SHOULD MEET THE OBJECTIVE AS STATED TO MOVE TOWARDS A MORE ROBUST AND EQUITABLE FISCAL REGIME, SHE SAID.
TO
ON SALARIES TAX. MRS TAM SAID SHE WAS PLEASED THAT THE FINANCIAL SECRETARY HAD TAKEN INTO ACCOUNT THE INTERESTS OF THE MIDDLE INCOME GROUP.
HE HAD INCLUDED IN HIS PROPOSALS A REDUCTION IN THE STANDARD TAX RATE, A REVISION OF MARGINAL TAX RATES, AN INCREASE IN THE PERSONAL ALLOWANCE AND A RISE IN THE CHARGEABLE INCOME LIMIT MAXIMUM MARGINAL RATE.
FOR THE
SHE SAID THAT THE ONLY DRAWBACK WAS THAT THE FINANCIAL SECRETARY HAD NOT GIVEN ANY DEFINITE ANSWER TO THE REQUEST FOR SEPARATE TAXATION FOR MARRIED COUPLES, OR MADE ANY COMMITMENT TO IT.
"SEPARATE TAXATION DOES NOT ONLY SERVE THE PURPOSES OF BRINGING IMPROVEMENTS TO THE TAX SYSTEM AND PROMOTING THE WORKFORCE, IT ALSO HAS GREAT SOCIAL SIGNIFICANCE IN HELPING TO ESTABLISH WOMEN'S SOCIAL STATUS, SHE MAINTAINED.
LE
SHE SAID THE INTRODUCTION OF A WORKING WIFE ALLOWANCE AS AN EXPEDIENT MEASURE WAS NOT A BAD IDEA, BUT IT DEFINITELY SHOULD NOT TAKE THE PLACE OF SEPARATE TAXATION.
TAX
URGING THE GOVERNMENT TO MAKE A CLEAR COMMITMENT ON THE EXACT DATE OF IMPLEMENTING SEPARATE TAXATION, MRS TAM SAID SHE FULLY BELIEVED THAT SEPARATE TAXATION, ON TOP OF THE NEW SALARIES ARRANGEMENTS TO BE IMPLEMENTED THIS YEAR, WOULD MOVE THE PERSONAL SYSTEM TOWARDS A MORE ROBUST AND EQUITABLE SHAPE.
TAX
REGARDING THE ADJUSTMENT OF THE RATIO BETWEEN DIRECT AND INDIRECT TAXES, SHE STRESSED THAT THE RATIO ADOPTED SHOULD BE IN LINE WITH THE CHANGES OF THE COMMUNITY.
/SHE NOTED